Neowave Chart

™

NEoWave CHARTS Mon, Dec 18, 2006

Analysis by Glenn Neely Suspected Pattern Developing: Contracting Triangle for wave-B

GOLD - Daily Data (emailed each Monday before 11:00 am PT)

A b

750

d

A

725

e B? c

700

a

= Gold is here

b 675

d

B

650 D

625 F?

600

C A

575 550 525 500 475

a

E

G?

c

ANALYSIS: Last week’s bottom-line was “...Gold should be heading sideways-or-down the next few weeks.” Dropping more than $12 for the week, that requirement was met. After months of consolidation, it is impossible not to notice Gold has been contracting the last 6+ months. The most important question remains whether the contraction begins after this year’s high or with the rally into this year’s high. The answer to that question will decide Gold’s fate for years.

Trend next 5 days: Sideways or Down

For assistance, write to [email protected] 450 Apr 18, 06

May 18, 06

Jun 19, 06

Jul 19, 06

Aug 18, 06

Sep 19, 06

Oct 19, 06

Nov 20, 06

Dec 20, 06

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NEoWave™ CHARTS Analysis by Glenn Neely

Mon, Dec 18, 2006

NOTES (via inverted 10-yr. cash yield) - Daily Data (emailed each Monday before 11:00 am PT)

ANALYSIS: Notes continue to behave so closely to the requirements of a 1st Extension Terminal that I have finally decided to remove the question marks from waves-1, 2 and 3. To properly alternate with wave-2, expect wave-4 to form a Flat and consume 200% to 300% of the time of wave-2. As long as wave-2’s low is not broken, and one more new high is then made, the end of low interest rates will be at hand!

3.6

Trend next 5 days: Sideways or Down

3.7 3.8

a

3.9

B

4 4.1

For assistance, write to [email protected]

4.2

(e)?

D

4.3 3

4.4 A

4.5

1

4.6

4?

4.7 4.8

C

(d) a

4.9 5

2

Suspected Pattern Developing: Flat ending with a 1st Extension Terminal c-wave

b

5.1

5

3

d x1

5.2 a

5.3

2

4 E

c

5.4

e

= NOTES are here

5.5 Feb 22, 05

May 23, 05

Aug 22, 05

b

b Nov 22, 05

Feb 24, 06

May 25, 06

Aug 24, 06

Nov 24, 06

Feb 21, 07



Mon, Dec 18, 2006

S&P 500 - Daily Data

Suspected Pattern Developing: Large Expanding Triangle (starting August 2006)

1450

(emailed each Monday before 11:00 am PT)

A?

B b

B?

d

d?

Trend next 5 days: Volatile Consolidation

1425 a

1400

e

c

C

A?

b

e

= S&P is here

c? a

c

1375

d

a

b

1350

B 1325

1300

2 4

1275 5

1250

C

1

1225

ANALYSIS: Despite recent, new highs, the S&P’s behavior allows me to maintain the conclusion point of wave-A. Since the time consumption of each leg following wave-A is tending toward equality, my immediate assumption is a NEoWave Diametric (or Symmetrical) is forming. If so, the S&P will top early this week and drop back around the lows of wave-c. Afterward, a mild new high would be followed by another selloff below wave-c.

3

1200 Apr 13, 06

May 15, 06

Jun 14, 06

For assistance, write to [email protected] Jul 14, 06

Aug 14, 06

Sep 13, 06

Oct 12, 06

Nov 10, 06

Dec 12, 06

Jan 10, 07



Mon, Dec 18, 2006

EURO - Daily Data (emailed each Monday before 11:00 am PT) ANALYSIS: A week ago I warned “Wave-(4), to alternate 1.3600 properly with wave-(2), will take far less time and will exhibit a Zigzag type correction.” The severity of last week’s sell-off is already making my forecast come true. With wave-x(3) so close 1.3400 to the length of wave-(1), but still shorter, we can confidently say wave-x(3) cannot be over. As a result, I have labeled the recent high wave-c of a Zigzag and the current drop wave-x of an 1.3200 ongoing, complex correction to ultimately end wave-x(3).

x(3)? c

For assistance, write to [email protected] 1.3000

(1)

x?

b

1.2800

a b

Suspected Pattern Developing: NEoWave Terminal after wave-(B)

1.2600

(5) c

(2)

a

1.2400

x(1)

(3)

(x)

(4) (b)

(d) (e)

(a)

1.2200

(c) (e)

1.2000

B

1.1800 Feb 2, 06

May 4, 06

Trend next 5 days: Bottoming?

Aug 3, 06

(2)

B

= EURO is here

Nov 1, 06

Jan 30, 07


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